DTC 201906250011A
General repurchase of shares announcement
Datatec Limited
Incorporated in the Republic of South Africa
(Registration Number: 1994/005004/06)
JSE share code: DTC
ISIN: ZAE000017745
("Datatec" or the "Company")
GENERAL REPURCHASE OF SHARES ANNOUNCEMENT
1. INTRODUCTION
The board of directors of the Company ("Board") hereby advises shareholders that the
Company, in accordance with the general authority granted by shareholders at the
Company's general meeting held on Monday, 15 January 2019 ("General Authority"), has
cumulatively repurchased from shareholders 11 300 000 ordinary shares ("Shares") in
aggregate, representing 5.0% of the Company's issued share capital and the General
Authority has therefore now been fully utilised.
On 4 March 2019, shareholders were advised that Datatec had cumulatively repurchased 6
900 000 ordinary Datatec shares in aggregate under the General Authority, representing
3.05% of the Company's issued share capital and these shares were subsequently cancelled
and delisted.
A further 4 400 000 ordinary Datatec shares, representing 1.95% of the Company's issued
share capital, were repurchased during the period commencing 4 March 2019 up to and
including 21 June 2019 ("Repurchase"). This additional Repurchase brings the total
repurchased shares under the General Authority to 5.0% of the Company's issued share
capital.
2. DETAILS OF THE REPURCHASE
Details of the Repurchase are as follows:
Dates of Repurchase: 4 March 2019
to 21 June 2019
Highest repurchase price per Share: R 36.00
Lowest repurchase price per Share: R 30.94
Number of Shares repurchased: 4 400 000
Total value of Shares repurchased: R 146 148 124
Total Shares in issue before the Repurchase: 219 200 000
Total Shares in issue after cancellation of
repurchased shares: 214 800 000
Number of treasury shares (unchanged): 650 000
Application has been made to the JSE to cancel and delist the shares which have been
repurchased, with effect from Tuesday, 25 June 2019.
3. STATEMENT BY THE BOARD
The Board has considered the effect of the Repurchase and is of the opinion that, for a period
of 12 months following the date of the Repurchase:
- the Company and its subsidiaries (the "group") will be able in the ordinary course of
business to pay its debts;
- the assets of the Company and the group will be in excess of the liabilities of the
Company and the group. For this purpose, the assets and liabilities were recognised
and measured in accordance with the accounting policies used in the latest audited
annual group financial statements;
- the share capital and reserves of the Company and the group will be adequate for
ordinary business purposes;
- the working capital of the Company and the group will be adequate for ordinary
business purposes; and
- the Company and the group have passed the solvency and liquidity test and since the
test was performed, there have been no material changes to the financial position of the
group.
4. SOURCE OF FUNDS
The Repurchase was funded from the Company's available cash resources.
5. FINANCIAL INFORMATION
The Company's cash balances decreased by R146.7 million as a result of the Repurchase
and, on cancellation of the Repurchase Shares, share capital and share premium will reduce
by the same amount.
Interest receivable at rates of approximately 7% per annum (pre-tax) will be foregone on the
cash resources used to acquire the Repurchase Shares.
The reduced number of Shares in issue after cancellation of the Repurchase Shares will
result in a lower weighted average number of shares used to calculate earnings per share in
future reporting periods.
6. COMPLIANCE WITH PARAGRAPH 5.72 OF THE LISTINGS REQUIREMENTS
The Repurchase was effected through the order book operated by the JSE and done without
any prior understanding or arrangement between the Company and the counter parties. A
portion of the repurchase programme was executed during the Company's FY19 results
closed period. The Company had put in place a repurchase programme and submitted this
to the JSE in writing prior to the commencement of the closed period. An independent third
party then executed the repurchase programme, uninfluenced by the Company, during the
closed period.
Accordingly, the Company has complied with paragraph 5.72 of the Listings Requirements
of the JSE.
Johannesburg
25 June 2019
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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